Polygon Foundation Refutes Allegations of Matic Sell-off on Binance, Citing Mislabeling of Wallets

Nansen’s Wallet Labeling Controversy

Nansen, the firm responsible for labeling these wallets, initially asserted that these addresses displayed strong connections to Polygon. However, they later removed the labels following a public denial by Polygon’s CEO.

Mislabeling Allegation by Lookonchain

Blockchain analytics firm Lookonchain raised concerns about a cryptocurrency wallet supposedly belonging to Polygon Foundation, which had reportedly transferred substantial amounts of Matic tokens on Binance. Polygon Labs’ founder, Sandeep Nailwal, refuted the claim, asserting that it was a case of mislabeling, and the wallet did not belong to Polygon Foundation.

Flagged Wallets and Transactions

Lookonchain flagged two wallets as “Polygon Foundation: 0x8d36” and “Polygon Foundation: 0xf957.” These wallets collectively deposited over $5.5 million worth of MATIC tokens onto Binance in the past 30 days, with more than half of the total amount deposited in the last two days.

Polygon Labs’ CEO Raises Mislabeling Issue

Polygon Labs’ CEO, Marc Boiron, was the first to highlight the mislabeling issue. In response, the blockchain analyst explained that the wallets were labeled by another crypto analytics firm, Nansen.

Nansen’s Response and Evidence

Nansen defended their labeling process, stating that they follow a rigorous procedure before assigning labels to wallets. They explained that the two wallets in question had demonstrated strong connections to key members of the Polygon community.

  • They cited instances of interaction by Polygon Labs executives with wallet address 0x8d365687a75dc7688864822869ae0551bb6fc105.
  • In one instance, Polygon Sanket, a key figure at Polygon, had sent ETH to the mentioned address.
  • The same address had received tokens from private rounds in which Polygon had invested, including Hot Cross.

Regarding the second wallet address, 0xf957fa14ea72a9ecd7bdc06c5be89a5a34c7aa89, Nansen claimed that their “counterparties consist of the previous address 0x8d3 and other entities closely tied to Polygon, including the head of Investments.”

Resolution and Acknowledgment

However, in light of Polygon Labs’ CEO’s public denial of any connection between these addresses and the firm, Nansen decided to remove the labels. Marc Boiron expressed gratitude to Nansen for taking this step and acknowledged the challenges of labeling wallets. Polygon Foundation did not respond to Cointelegraph’s requests for comments at the time of this press release.

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